San Diego Council Approves Midway Rising Redevelopment

Overview

• The City Council approved the comprehensive Midway Rising package on Monday, Nov. 9, and unanimously voted to begin the process to create an Enhanced Infrastructure Financing District to reimburse infrastructure work.
• The plan calls for a 105-year lease with private developers led by Stan Kroenke that would build a new 16,000-seat arena, 4,224 housing units including 2,000 affordable homes, about 130,000 square feet of retail, and roughly 15 acres of parks.
• The city would forgo large upfront lease payments under the deal and could receive an estimated $38.1 million to $68.5 million in combined arena and development revenue over the life of the lease, according to the city’s Independent Budget Analyst.
• Developers may seek up to about $460 million in infrastructure reimbursements through a tax‑increment EIFD, a public financing tool that returns future property tax gains to pay for public works such as roads, utilities, and flood controls.
• Key outstanding issues include floodplain risk, century-old landfill contamination, traffic and noise concerns, upcoming environmental reviews and financing approvals, and possible legal or administrative challenges that could delay construction.